Res 78-96 RESOLUTION NO. 78-96
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH,
FLORIDA, DECLARING THE CITY OF DELRAY BEACH'S OFFICIAL INTENT TO
SEEK REIMBURSEMENT FOR CERTAIN CAPITAL EXPENDITURES MADE AND TO
BE MADE WITH RESPECT TO THE DESIGN, ENGINEERING, CONSTRUCTION AND
EQUIPPING OF A RENOVATION AND REMODELING PROJECT TO THE CITY HALL
BUILDING, INCLUDING THE FINANCE DEPARTMENT AND RELATED
FACILITIES; THE DESIGN, ENGINEERING, CONSTRUCTION AND EQUIPPING
OF AN EXPANSION PROJECT TO THE CITY-OWNED GOLF COURSE CLUBHOUSE;
bLT. FROM PROCEEDS OF ITS NOT TO EXCEED $3,000,000 UTILITY TAX
REVENUE OBLIGATIONS; AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City Commission of the City of Delray Beach, Florida (the
"Commission") did, on Decemt~r 3, 1991, adopt Resolution No. 98-91 (as amended and
supplemented, the "Original Resolution"), authorizing the issuance from time to time
of revenue obligations secured by the proceeds of the utilities services tax levied
by the City of Delray Beach, Florida (the "City") pursuant to Chapter 166.231 Florida
Statutes; and
WHEREAS, pursuant to the terms and provisions of the Original Resolution,
the Commission will adopt on or about October 29, 1996, a resolution (herein, the
"Note Resolution") authorizing the issuance of Utilities Tax Revenue Bonds or Notes
in the principal amount of not to exceed $3,000,000 (herein, the "Notes"); and
WHEREAS, pursuant to the Note Resolution, the City will be authorized to
borrow up to 83,000,000 to finance all or a portion of the cost of design,
engineering, construction and equipping of a renovation and remodeling project of
City Hall, including the Finance Department and related facilities and to finance all
or a portion of the design, engineering, construction and equipping of a municipal
golf course clubhouse expansion (collectively, the "Project"); and
WHEREAS, it is intended by the City that the interest on the Notes will be
excludable from gross income for Federal income tax purposes; and
WHEREAS, the City has incurred or anticipates that it will incur certain
capital expenditures relating to the Project prior to the issuance of the Notes; and
WHEREAS, it was necessary for the City to incur within the last 60 days and
the City will incur prior to the issuance of the Notes certain capital expenditures
(herein, "Prior Expenditures") with respect to the Project; add
WHEREAS, such expenditures w~re paid out of Golf course and General
construct/on monies of the City on an interim basis; and
WHEREAS, the City incurred or will incur the Prior Expenditures with the
expectation of seeking reimbursement from the proceeds of the Notes; and
WHEREAS, the Internal Revenue Code of 1986, as amended, and the regulations
promulgated thereunder (the "Regulations" ), permit the reimbursement of prior
incurred capital expenditures from the proceeds of tax-exempt obligations if the
issuer, among other things, declares its official intent regarding such
reimbursement; and
WHEREAS, it is intended by the Commission that this Resolution constitutes
such official intent with respect to the reimbursement of the Prior Expenditures from
a portion of the proceeds of the Notes.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DELRAY
BEACH, FLOR/DA, AS FOLLOWS:
Section 1. That the recitals set forth above are adopted by the Commission
as the findings of the City and are incorporated herein.
Section 2. That this Resolution constitutes the "official intent" with
respect to the reimbursement of the Prior Expenditures from a portion of the proceeds
of the Notes as required by, and in conformance with, the provisions of Section
1. 150-2(E) of the Regulations.
Section 3. That the expenditures to be reimbursed pursuant to this
Resolution have been incurred within 60 days prior to the date hereof or will be
incurred after the date hereof in connection with the Project.
Section 4. That the City reasonably expects to reimburse the Prior
Expenditures with a portion of the proceeds of the Notes subsequent to the date
hereof, and no funds from sources other than the "reimbursement bond issue" (as such
term has the meaning assigned to it under the B~gulations) portion of the Notes are,
or are reasonably eXpected to be, reserved, allocated on a long term basis, or
otherwise set aside by the City pursuant to the City's budget or financial policies
to pay such Prior Expenditures.
Section 5. That the City will, upon receipt of the proceeds of the Notes,
allocate in writing the amount of proceeds of the Notes used to reimburse the Prior
Expenditures. Such allocation will be accomplished within the later of 18 months
from the earliest date such Prior Expenditures were incurred or the date the Project
is placed in service, but in no event later than 3 years after the first Prior
Expenditure was incurred.
Section 6. That this Resolution shall become effective immediately upon
its adoption.
PASSED AND ADOPTED in regular session on this the 15th day of October,
ATUEST:
City Cferk~ -
- 2 - Res. No. 78-96
MEMORANDUM
FROM: City Clerk's Office
SUBJECT: D~stribution of Ordinances/Resolutions
n~TE: lo/~/~
Attached for your use~file~information is an executed copy of the
following:
If you need additional information, please contact the City Clerk's
Office.
AMH/m
Attachment(s}
MEMORANDUM
To: City Commission
From: David T. Harden, City Manager
Subject: Reimbursement Resolution
Date: October 9, 1996
This resolution declares the City's official intent to seek reimbursement for expenditures
made with respect to the City Hall Envelope Project as well as the Golf Course
Clubhouse Dining Room Expansion from proposed 1996 Utility Tax Note proceeds.
This resolution is in compliance with IRS regulations which require municipal borrowers
to make a declaration of official intent to reimburse funds for prior capital expenditures
made from proceeds of tax-exempt financings. The declaration must be made within 60
days of the first construction expenditure and must be reimbursed within an 18 month
period.
c: Rebecca S. O'Connor, Treasurer
RESOLUTION NO. 78-96
A RESOLUTION OF THE COMMISSION OF THE CITY OF
DELRAY BEACH, FLORIDA, DECLARING THE CITY OF
DELRAY BEACH'S OFFICIAL INTENT TO SEEK
REIMBURSEMENT FOR CERTAIN CAPITAL EXPENDITURES
MADE AND TO BE MADE WITH RESPECT TO THE DESIGN,
ENGINEERING, CONSTRUCTION AND EQUIPPING OF A
RENOVATION AND REMODELING PROJECT TO THE CITY
HALL BUILDING, INCLUDING THE FINANCE DEPARTMENT
AND RELATED FACILITIES; THE DESIGN, ENGINEERING,
CONSTRUCTING, AND EQUIPPING OF AN EXPANSION
PROJECT TO THE CITY OWNED GOLF COURSE
CLUBHOUSE, ALL FROM PROCEEDS OF ITS NOT TO
EXCEED $3,000,000 UTILITY TAX REVENUE OBLIGATIONS;
AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, The City Commission of the City of Delray Beach, Florida (The
"Commission") did, on December 3, 1991, adopt Resolution No. R-98-91 (as amended and
supplemented, the "Original Resolution"), authorizing the issuance from time to time of revenue
obligations secured by the proceeds of the utilities services tax levied by the City of Delray Beach,
Florida (the "City") pursuant to Chapter 166.231 Florida Statutes; and
WHEREAS, pursuant to the terms and provisions of the Original Resolution, the
Commission will adopt on or about October 29, 1996, a resolution (herein, the "Note Resolution")
authorizing the issuance of Utilities Tax Revenue Bonds or Notes in the principal amount of not to
exceed $3,000,000 (herein, the "Notes"); and
WHEREAS, pursuant to the Note Resolution, the City will be authorized to borrow
up to $3,000,000 to finance all or a portion of the cost of design, engineering, constructing, and
equipping of a renovation and remodeling project of City Hall, including the Finance Department
and related facilities and to finance all or a portion of the design, engineering, constructing, and
equipping of a municipal golf course clubhouse expansion (collectively, the "Project"); and
WHEREAS, it is intended by the City that the interest on the Notes will be
excludable from gross income for Federal income tax purposes; and
WHEREAS, the City has incurred or anticipates that it will incur certain capital
expenditures relating to the Project prior to the issuance of the Notes; and
WHEREAS, it was necessary for the City to incur within the last 60 days and the
City will incur prior to the issuance of the Notes certain capital expenditures (herein, "Prior
Expenditures") with respect to the Project; and
WHEREAS, such expenditures were paid out of Golf Course and General
Construction monies of the City on an interim basis; and
WHEREAS, the City incurred or will incur the Prior Expenditures with the
expectation of seeking reimbursement from the proceeds of the Notes; and
Res. No. 78-96
WHEREAS, the Internal Revenue Code of 1986, as amended, and the
regulations promulgated thereunder (the "Regulations"), permit the reimbursement of prior
incurred capital expenditures from the proceeds of tax-exempt obligations if the issuer, among
other things, declares its official intent regarding such reimbursement; and
WHEREAS, it is intended by the Commission that this Resolution constitutes
such official intent with respect to the reimbursement of the Prior Expenditures from a portion of
the proceeds of the Notes; and
NOW, THEREFORE, be it resolved by the Commission of the City of Delray
Beach, Florida, as follows:
SECTION 1. The recitals set forth above are adopted by the Commission as
the findings of the City and are incorporated herein.
SECTION 2. This Resolution constitutes the "official intent" with respect to the
reimbursement of the Prior Expenditures from a portion of the proceeds of the Notes as required
by, and in conformance with, the provisions of Section 1.150-2(E) of the Regulations.
SECTION 3. The expenditures to be reimbursed pursuant to this Resolution have
been incurred with 60 days prior to the date hereof or will be incurred after the date hereof in
connection with the Project.
SECTION 4. The City reasonably expects to reimburse the Prior Expenditures
with a portion of the proceeds of the Notes subsequent to the date hereof, and no funds from
sources other than the "reimbursement bond issue" (as such term has the meaning assigned to it
under the Regulations) portion of the Notes are, or are reasonably expected to be, reserved,
allocated on a long term basis, or otherwise set aside by the City pursuant to the City's budget or
financial policies to pay such Prior Expenditures.
SECTION 5. The City will, upon receipt of the proceeds of the Notes, allocate in
writing the amount of proceeds of the Notes used to reimburse the Prior Expenditures. Such
allocation will be accomplished within the later of 18 months from the earliest date such Prior
Expenditures were incurred or the date the Project is placed in service, but in no event, later than
3 years after the first Prior Expenditure incurred.
SECTION 6. This Resolution shall be effective immediately upon its adoption.
PASSED and ADOPTED in regular session on this 15th day of October, 1996.
Mayor
ATTEST:
City Clerk
Res. No. 78-96